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US Exim: A decade-long renewal or axe it entirely?

(Global Trade Review, London, 16 August 2019) Two US senators have proposed a bill to reauthorise the US Export-Import Bank (US Exim) for 10 years over the traditional four, as the bank’s expiry date of September 30 inches closer. The plan, which is gaining widespread support and attention across the US and comes after legislation negotiated by House Financial Services chairwoman Maxine Waters flopped, also increases US Exim’s exposure cap over seven years to US$175bn from US$135bn. After regaining its full lending powers in May to the delight of exporters across the US and the dismay of republicans in Congress who see EXIM as “corporate welfare” which only benefits large businesses looking to score overseas sales, the expiry date for US Exim is now creeping up as its charter must be renewed, or indeed axed, next month. “With 95% of our customers located overseas, competitive export financing is critical to maintaining a level playing field with our competitors. Boeing supports reauthorising the Export-Import Bank, which helps US manufacturers create jobs and compete in a global market,” a spokesperson for Boeing tells GTR in response to the approaching expiry date. Boeing intends to offer financial services to some of its international clients if Congress doesn’t give approval for further operations, the Wall Street Journal reported.